Talks about the background of SB 836 and reviews the
goals of the potential work group on SB 836 (EXHIBIT C). Requests the work group convene and provide
solutions before the end of the legislative session.

244

Sen. Ringo

Comments on the ambiguity of the impact on schools.

246

Chair Ferrioli

Agrees and talks about properties that are inside
the public trust.

252

Sen. Ringo

Believes SB 836 has no financial impact on the
Common School Fund but that the issue should be researched.

260

Chair Ferrioli

Comments on non-trust lands that are under state
management.

270

Jay McCaulley

Salmon Restoration and Enhancement Coalition. States
support of SB 836.

295

Chair Ferrioli

Closes public hearing on SB 836 and opens public
hearing on SB 838.

SB 838
– PUBLIC HEARING

300

Callens

Provides overview of SB 838.

315

Chair Ferrioli

Summarizes the issues surrounding SB 838. Requests
Mr. Purchase discusses the circumstance under which a wharf or pier owner operates
on state owned lands.

340

Steve Purchase

Division of State Lands (DSL). Provides testimony
against SB 838 (EXHIBIT D). Talks
about wharf provisions in navigable channels and provides an example of the Port
of Portland.

366

Chair Ferrioli

Inquires if the state charges a lease for the use of
wharves and piers in navigable waterways.

368

Purchase

Responds that the state does not charge lease fees.
Continues explanation of wharf exemption definition and states that if the
wharf structure exists outside of an incorporated city or a port district,
there must be a lease with the state.

390

Sen. Ringo

Asks for clarification on what happens when the use
of the wharf ceases.

394

Purchase

Explains that if the wharf is not being used for
loading or unloading goods or merchandise, the wharf exemption does not
apply.

Provides consistency for the waterway leasing
program with existing statutory requirements for grazing property, also
administered by DSL, and provides reasonable certainty to current lease
holders in aid of recouping investment in costly leasehold structures
and improvements to state owned lands, while providing minimal
requirements for bank financing such improvements

Requires
DSL to offer a lease rather than require removal of wharf structures if
the lessee no longer qualifies for the wharf exemption, which would
provide financial benefit to DSL, the state, and the Common School Fund

133

Sen. Ringo

Asks if the wharf must be removed if the use changes.

136

Purchase

Explains that DSL’s practice on wharf removal
requirements.

147

Sen. Ringo

Asks if Mr. McCaulley’s main concern is the Port of
Portland.

148

McCaulley

Responds that the Port of Portland is one example of
many throughout the state.

154

Sen. Ringo

Asks about Mr. McCaulley’s specific interest in SB
838.

156

McCaulley

States his interest in establishing consistency with
DSL leases.

174

Sen. Ringo

Reiterates that DSL can request wharf removal but it
is not standard practice.

178

McCaulley

Advocates that all structures come under DSL in some
manner.

190

Sen. Ringo

Asks if Mr. McCaulley agrees that DSL does not
insist on removal of structures.

196

McCaulley

Disagrees.

200

Sen. Ringo

Asks for an example of DSL requiring removal of a
wharf.

201

McCaulley

States that he does not have a specific example.

202

Sen. Ringo

Inquires if he is concerned DSL could request wharf
removal at some future point.

203

McCaulley

Affirms.

204

Chair Ferrioli

Clarifies that SB 838 would make the lease 20 years
with a preference right to renew and would change the policy of requiring
removals

215

McCaulley

Affirms.

218

Chair Ferrioli

Asks for DSL’s objections to changing from a 15 year
lease to a 20 year lease.

220

Purchase

Explains the background of the 15 year lease and
believes the 20 year requirement would require DSL to renegotiate old leases.

248

Chair Ferrioli

Asks when DSL’s administrative rules were adopted by
the work group.

250

Purchase.

Replies that the rules were adopted July 1, 1999 by
the State Land Board.

252

Chair Ferrioli

Asks who decided to limit the leases to 15 years.

255

Purchase

Explains that a consensus was reached upon the
recommendation that DSL made to the Land Board.

266

Chair Ferrioli

Asks if the Waterway Leasing Task Force had a
recommendation for lease length.

267

Purchase

Offers to research the issue.

269

Chair Ferrioli

Clarifies that the 15 year lease decision was a DSL
recommendation to the Land Board.

271

Purchase

Affirms.

272

Chair Ferrioli

Inquires if Purchase participated in the work group.

273

Purchase

Affirms.

275

Chair Ferrioli

Wonders if the work group and DSL had differing
recommendations.

282

Purchase

Offers to research the recommendations from the
Waterway Leasing Task Force.

284

Chair Ferrioli

Asks if there was a formal set of recommendations
made by the work group.

287

Purchase

Offers to provide the recommendations.

290

Chair Ferrioli

Asks if there were recommendations from the work
group and whether they differed from DSL’s recommendations.

291

McCaulley

States there were several recommendations DSL did
not follow.

320

Chair Ferrioli

Asks about preferential treatment of current lessees
in lease renewals.

331

Purchase

Talks about preference rights with current lessees.

348

Chair Ferrioli

Clarifies that the current lessee would have preference
under SB 838.

349

Purchase

Explains that the current preference right is to
upland riparian owners.

352

Chair Ferrioli

States that if an upland riparian landowner sold the
land to a third party, it would create a renewal preference for the third party.

353

Purchase

Affirms.

354

Chair Ferrioli

Asks if that process causes disruptions.

355

Purchase

Explains DSL leasing contracts and preference
rights.

360

Chair Ferrioli

Suggests the conflict comes when the new upland land
owner extends his or her preference right to take over the lessee’s
facilities.

363

Purchase

Believes the conflict is more widespread and
explains.

368

Chair Ferrioli

States that the preference would stay with the pier
operator if the amendments are adopted.

371

Purchase

Responds that there might be two preference
landowners and explains.

378

Chair Ferrioli

Remarks that DSL offers the preference to the land
onto which the pier or wharf facilities are pertinent.

380

Purchase

Affirms.

381

Chair Ferrioli

Believes there is some confliction within DSL
policies regarding wharves and piers.

TAPE 48, B

014

McCaulley

Talks about the severability of riparian rights.

035

Chair Ferrioli

Comments on the right of first refusal.

036

McCaulley

Says that SB 838 does not preclude the state from
deciding who is issued a lease and elaborates.

056

Chair Ferrioli

Asks about leases over $100,000.

063

Purchase

Explains policies surrounding leases worth $100,000
or more.

070

Chair Ferrioli

Asks about applying SB 838 policies only to new
leases.

073

Purchase

Explains DSL would still have concerns over
preference rights.

085

Chair Ferrioli

Inquires if DSL leases were originally 30 years.

087

Purchase

States that historic leases were between 5 years to
100 years.

090

Chair Ferrioli

Asks about the DSL director offering to personally
negotiate with banks.

093

Purchase

Explains that there was a concern over whether banks
would sign a 15 years lease.